BIR files P102.94M case against mayor's husband

CEBU, Philippines - The Bureau of Internal Revenue (BIR) yesterday filed a P102.94 million tax evasion case against the husband of Consolacion Mayor Teresa Alegado.

BIR chief Kim Henares said rice importer Nilo Alegado was charged for evading tax payment and failure to supply correct and accurate information in his Income Tax Returns (ITRs) for taxable year 2009 in violation of Sections 254 and 255 of the National Internal Revenue Code (NIRC) of 1997.

Nilo Alegado is engaged in the business of renting real properties and dealing of rice and operates under the name “New Store” in Consolacion Public Market, Poblacion Oriental, Consolacion.

When contacted by The FREEMAN for comment, Mayor Alegado said they are now referring the case to their lawyers as they were only informed about the case through the media.

She admitted that she and her husband have engaged in importing rice for more than 30 years.

Henares said that records of rice importations at the National Food Authority (NFA) showed that Nilo Alegado made importations for 2009 amounting to P183.01 million.

A comparison of the same amount with the declaration of Nilo Alegado in his ITR and Audited Financial Statements for the same year filed with the BIR showed purchases of just P3.41 million, indicating a huge discrepancy in the total amount of P179.60 million.

Henares said that adding the declared sales of Ale-gado in his ITR of P4.33 million, sales should have been P183.94 million.

She said that the total percentage of underdeclaration of sales per investigation is 4,143.34 percent.

Under the NIRC of 1997, an underdeclaration of taxable income of more than 30 percent is considered as substantial underdeclaration and constitutes prima facie evidence of fraud tantamount to tax evasion.

Henares said that Alegado was slapped with a deficiency income tax assessments for taxable year 2009 in the aggregate amount of P102.94 million, inclusive of surcharges and interests.

The case against Alegado is the 68th filed under the BIR’s Run After Tax Evaders (RATE) program. (FREEMAN)